Sainsbury’s warn of 66% profits slump

BRITISH retailer Sainsbury’s showed further evidence it was suffering at the hands of price-cutting rivals yesterday as it warned that first-half profits would slump by nearly two-thirds.

Shares slipped to a 15-month low after the embattled company gave its third warning on profits this year, although analysts said continued bid talk and the prospect of a trading review next week had prevented the stock falling further.

One analyst said yesterday’s update reinforced his view that the Britain’s third supermarket was being “killed” by rivals Tesco and Asda, who have been steadily eating into its market share in recent years.